darthtang aw
Active Member
http://news.yahoo.com/s/nm/20100202/..._backdoortaxes
Hmmmm................
why would you pull the story.
Hmmmm................
why would you pull the story.
This is interesting
- Thread starter darthtang aw
- Start date
darthtang aw
Active Member
Here it is in its original form..........
Reuters
February 2, 2010 - 10:39am
The Obama administration's plan to cut more than $1 trillion from the deficit over the next decade relies heavily on so-called backdoor tax increases that will result in a bigger tax bill for middle-class families.
In the 2010 budget tabled by President Barack Obama on Monday, the White House wants to let billions of dollars in tax breaks expire by the end of the year — effectively a tax hike by stealth.
While the administration is focusing its proposal on eliminating tax breaks for individuals who earn $250,000 a year or more, middle-class families will face a slew of these backdoor increases.
The targeted tax provisions were enacted under the Bush administration's Economic Growth and Tax Relief Reconciliation Act of 2001. Among other things, the law lowered individual tax rates, slashed taxes on capital gains and dividends, and steadily scaled back the estate tax to zero in 2010.
If the provisions are allowed to expire on December 31, the top-tier personal income tax rate will rise to 39.6 percent from 35 percent. But lower-income families will pay more as well: the 25 percent tax bracket will revert back to 28 percent; the 28 percent bracket will increase to 31 percent; and the 33 percent bracket will increase to 36 percent. The special 10 percent bracket is eliminated.
Investors will pay more on their earnings next year as well, with the tax on dividends jumping to 39.6 percent from 15 percent and the capital-gains tax increasing to 20 percent from 15 percent. The estate tax is eliminated this year, but it will return in 2011 — though there has been talk about reinstating the death tax sooner.
Millions of middle-class households already may be facing higher taxes in 2010 because Congress has failed to extend tax breaks that expired on January 1, most notably a "patch" that limited the impact of the alternative minimum tax. The AMT, initially designed to prevent the very rich from avoiding income taxes, was never indexed for inflation. Now the tax is affecting millions of middle-income households, but lawmakers have been reluctant to repeal it because it has become a key source of revenue.
Without annual legislation to renew the patch this year, the AMT could affect an estimated 25 million taxpayers with incomes as low as $33,750 (or $45,000 for joint filers). Even if the patch is extended to last year's levels, the tax will hit American families that can hardly be considered wealthy — the AMT exemption for 2009 was $46,700 for singles and $70,950 for married couples filing jointly.
Middle-class families also will find fewer tax breaks available to them in 2010 if other popular tax provisions are allowed to expire. Among them:
* Taxpayers who itemize will lose the option to deduct state sales-tax payments instead of state and local income taxes;
* The $250 teacher tax credit for classroom supplies;
* The tax deduction for up to $4,000 of college tuition and expenses;
* Individuals who don't itemize will no longer be able to increase their standard deduction by up to $1,000 for property taxes paid;
* The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-free.
Reuters
February 2, 2010 - 10:39am
The Obama administration's plan to cut more than $1 trillion from the deficit over the next decade relies heavily on so-called backdoor tax increases that will result in a bigger tax bill for middle-class families.
In the 2010 budget tabled by President Barack Obama on Monday, the White House wants to let billions of dollars in tax breaks expire by the end of the year — effectively a tax hike by stealth.
While the administration is focusing its proposal on eliminating tax breaks for individuals who earn $250,000 a year or more, middle-class families will face a slew of these backdoor increases.
The targeted tax provisions were enacted under the Bush administration's Economic Growth and Tax Relief Reconciliation Act of 2001. Among other things, the law lowered individual tax rates, slashed taxes on capital gains and dividends, and steadily scaled back the estate tax to zero in 2010.
If the provisions are allowed to expire on December 31, the top-tier personal income tax rate will rise to 39.6 percent from 35 percent. But lower-income families will pay more as well: the 25 percent tax bracket will revert back to 28 percent; the 28 percent bracket will increase to 31 percent; and the 33 percent bracket will increase to 36 percent. The special 10 percent bracket is eliminated.
Investors will pay more on their earnings next year as well, with the tax on dividends jumping to 39.6 percent from 15 percent and the capital-gains tax increasing to 20 percent from 15 percent. The estate tax is eliminated this year, but it will return in 2011 — though there has been talk about reinstating the death tax sooner.
Millions of middle-class households already may be facing higher taxes in 2010 because Congress has failed to extend tax breaks that expired on January 1, most notably a "patch" that limited the impact of the alternative minimum tax. The AMT, initially designed to prevent the very rich from avoiding income taxes, was never indexed for inflation. Now the tax is affecting millions of middle-income households, but lawmakers have been reluctant to repeal it because it has become a key source of revenue.
Without annual legislation to renew the patch this year, the AMT could affect an estimated 25 million taxpayers with incomes as low as $33,750 (or $45,000 for joint filers). Even if the patch is extended to last year's levels, the tax will hit American families that can hardly be considered wealthy — the AMT exemption for 2009 was $46,700 for singles and $70,950 for married couples filing jointly.
Middle-class families also will find fewer tax breaks available to them in 2010 if other popular tax provisions are allowed to expire. Among them:
* Taxpayers who itemize will lose the option to deduct state sales-tax payments instead of state and local income taxes;
* The $250 teacher tax credit for classroom supplies;
* The tax deduction for up to $4,000 of college tuition and expenses;
* Individuals who don't itemize will no longer be able to increase their standard deduction by up to $1,000 for property taxes paid;
* The first $2,400 of unemployment benefits are taxable, in 2009 that amount was tax-free.
darthtang aw
Active Member
What is really pathetic is all these implementaion would only bring in just under 900 billion dollars over the course of the next ten years. This still leaves our ten year deficit at over 7 trillion dollars..
So the argument repeal the bush tax cuts and increase taxes to pay for healthcare doesn't hold water. We don't have healthcare and we are still going to be in the hole 7 trillion dollars with all those tax increases the liberals are clamoring for....
So the argument repeal the bush tax cuts and increase taxes to pay for healthcare doesn't hold water. We don't have healthcare and we are still going to be in the hole 7 trillion dollars with all those tax increases the liberals are clamoring for....
slf125
Member
Originally Posted by Darthtang AW
http:///forum/post/3221328
What is really pathetic is all these implementaion would only bring in just under 900 billion dollars over the course of the next ten years. This still leaves our ten year deficit at over 7 trillion dollars..
So the argument repeal the bush tax cuts and increase taxes to pay for healthcare doesn't hold water. We don't have healthcare and we are still going to be in the hole 7 trillion dollars with all those tax increases the liberals are clamoring for....
like that's the only thing they're gonna do to help the budget.
http:///forum/post/3221328
What is really pathetic is all these implementaion would only bring in just under 900 billion dollars over the course of the next ten years. This still leaves our ten year deficit at over 7 trillion dollars..
So the argument repeal the bush tax cuts and increase taxes to pay for healthcare doesn't hold water. We don't have healthcare and we are still going to be in the hole 7 trillion dollars with all those tax increases the liberals are clamoring for....
like that's the only thing they're gonna do to help the budget.
darthtang aw
Active Member
Originally Posted by SLF125
http:///forum/post/3221371
like that's the only thing they're gonna do to help the budget.
Ok Shooter McGavin, with all the extra spending they are doing, how else are the going to balance the budget....Can't tax to much more.....
http:///forum/post/3221371
like that's the only thing they're gonna do to help the budget.
Ok Shooter McGavin, with all the extra spending they are doing, how else are the going to balance the budget....Can't tax to much more.....
reefraff
Active Member
Originally Posted by SLF125
http:///forum/post/3221515
Increase taxes, specifically on the wealthy; reduce spending on wars; reform healthcare and social security; etc.
LOL! Who gave you those ideas, the tooth fairy or Easter Bunny
http:///forum/post/3221515
Increase taxes, specifically on the wealthy; reduce spending on wars; reform healthcare and social security; etc.
LOL! Who gave you those ideas, the tooth fairy or Easter Bunny
slf125
Member
Originally Posted by reefraff
http:///forum/post/3221517
LOL! Who gave you those ideas, the tooth fairy or Easter Bunny
The Easter Bunny
http:///forum/post/3221517
LOL! Who gave you those ideas, the tooth fairy or Easter Bunny
The Easter Bunny
reefraff
Active Member
slf125
Member
oscardeuce
Active Member
Originally Posted by reefraff
http:///forum/post/3221517
LOL! Who gave you those ideas, the tooth fairy or Easter Bunny
Marx, Lenin, Mao, need I go on.
I'm in business for one year and I've ( including the death tax) had to come up with just north of $150,000 in taxes alone.
Payroll, unemployment, property, sales,
I'm hemmorhaging cash to the gov't and no one is helping me just because I work 60-80 hours a week.
BTW this "wealthy" American will probably have to let an employee go to keep the whole business from failing. How's that for hope? It sure will change my employee's life.
http:///forum/post/3221517
LOL! Who gave you those ideas, the tooth fairy or Easter Bunny
Marx, Lenin, Mao, need I go on.
I'm in business for one year and I've ( including the death tax) had to come up with just north of $150,000 in taxes alone.
Payroll, unemployment, property, sales,
I'm hemmorhaging cash to the gov't and no one is helping me just because I work 60-80 hours a week.
BTW this "wealthy" American will probably have to let an employee go to keep the whole business from failing. How's that for hope? It sure will change my employee's life.
darthtang aw
Active Member
Originally Posted by SLF125
http:///forum/post/3221515
Increase taxes, specifically on the wealthy; reduce spending on wars; reform healthcare and social security; etc.
do some research and math...you could tax those that make over 150,000 a year 100% and it would not cover the current budget deficit, remove iraq and afghanistan...we still have a deficit, with both options. how do you reform the healthcare and NOT have it cost money....SS is not sustainable....you would have to increase the buy in and decrease the pay out...how many people do you know that will go for that.
http:///forum/post/3221515
Increase taxes, specifically on the wealthy; reduce spending on wars; reform healthcare and social security; etc.
do some research and math...you could tax those that make over 150,000 a year 100% and it would not cover the current budget deficit, remove iraq and afghanistan...we still have a deficit, with both options. how do you reform the healthcare and NOT have it cost money....SS is not sustainable....you would have to increase the buy in and decrease the pay out...how many people do you know that will go for that.